Yangtzekiang Group and YGM Group have been carrying out certain transactions in relation to the sales and purchases of garment products and the licensing of warehouse and office space. As disclosed in the joint announcement of the Companies dated 24 March 2017, Yangtzekiang and YGM entered into, among other things, a master agreement in respect of the purchases of garment products by YGM Group from Yangtzekiang Group on 24 March 2017. Since such master agreement will expire on 31 March 2020, the Companies entered into the Garment Master Agreement on 25 March 2020 for renewing the terms and conditions in respect of the Garment Transactions during the period commencing on 1 April 2020 and ending on 31 March 2023. The Companies currently estimate that the annual trading volume of garment products under the Garment Master Agreement will not exceed the maximum annual cap of HKD 18 million for each of the three financial years ending 31 March 2023. As the annual cap in relation to the Garment Transactions represents more than 0.1% but less than 5% of the applicable percentage ratios (as defined in the Listing Rules) of the Companies and the Garment Transactions will be conducted on normal commercial terms, the Garment Transactions are only subject to the reporting, announcement and annual review requirements but are exempt from the independent shareholders' approval requirements under Chapter 14A of the Listing Rules for each of the Companies. As disclosed in the joint announcement of the Companies dated 24 March 2017, YGM has been licensing from Yangtzekiang the Premises and the Companies have entered into relevant licence agreements since 31 March 2001. As the prevailing licence agreement will expire on 31 March 2020, the Companies entered into the Licence Agreement on 25 March 2020 and agreed to continue such Licence Arrangement until 31 March 2023. The Companies estimate that the annual licence fee and the annual building management fee payable by YGM to Yangtzekiang under the Licence Agreement will not exceed the maximum annual cap of HKD 6.5 million and HKD 200,000, respectively. As the aggregate amount of the annual caps in relation to the Licence Arrangement represents more than 0.1% but less than 5% of the applicable percentage ratios of the Companies and the Licence Arrangement will be conducted on normal commercial terms, the Licence Arrangement is only subject to the reporting, announcement and annual review requirements but is exempt from the independent shareholders' approval requirements under Chapter 14A of the Listing Rules for each of the Companies.